In the chart, you can see all the bearish engulfing signals on the $SPX from 2018.
They have all resulted in corrections over the next 3 trading weeks, or a much stronger pullback during 1 week.
For a deeper dive on a daily chart view analysis, go to the related ideas below (Market Internals in Trouble).
Positive Note:
If we can rally and close on a weekly basis above the high of the bearish engulfing candle; that could would negate the down-trend signal.
They have all resulted in corrections over the next 3 trading weeks, or a much stronger pullback during 1 week.
For a deeper dive on a daily chart view analysis, go to the related ideas below (Market Internals in Trouble).
Positive Note:
If we can rally and close on a weekly basis above the high of the bearish engulfing candle; that could would negate the down-trend signal.
Complacency is growing though.